India to supplement its oil supply

Leveraging the low prices for oil from Saudi Arabia and the United Arab Emirates, India, the world’s third biggest oil importer and consumer, is planning to top up its strategic petroleum reserves (SPR). The country imports about 80% of its oil needs and has built strategic storage at three locations in southern India to store up to 36.87 million barrels of oil or about 5 million tonnes to protect against supply disruption. The impact of the coronavirus pandemic has destroyed demand, while supplies are increasing after Moscow’s refusal to back deeper output cuts at a meeting of the Organization of the Petroleum Exporting Countries and its OPEC+ allies.

Major OPEC producers such as Saudi Arabia and Abu Dhabi have said they will augment output while cutting prices, giving big consumers the chance to fill up at discounted prices. “It is an opportune time for us and for them (Abu Dhabi National Oil Company and Saudi Aramco) to finalise the deals and fill the SPRs…If there is any delay, we might fill the SPRs on our own,” stated an official familiar with the matter.